European stocks may open on a cautious note on Friday as investors weigh a range of uncertainties. <\/p>\n
The dollar inched higher and yields on 10-year U.S. government bonds extend recent surge to hover near 5 percent for the first time since 2007 after Fed Chair Jerome Powell didn’t offer clarity on the rate outlook. <\/p>\n
Middle East tensions looked set to escalate, with the U.S. State Department issuing a worldwide caution alert citing the “potential for terrorist attacks, demonstrations or violent actions against U.S. citizens and interests.”<\/p>\n
On the 14th day of the Israel-Hamas conflict, Israel’s defense minister has asked the country’s military to prepare for potential entry into the Gaza Strip with the aim of dismantling the Palestinian militant group.<\/p>\n
U.S. President Joe Biden said that he can’t let terrorists like ‘Hamas’ and tyrants like ‘Putin’ win. The United States has vetoed a UN-led ceasefire in the Middle East war.<\/p>\n
Concerns over supply disruptions sent oil prices soaring, with both Brent and WTI contracts rising around 1 percent in Asian trade as the U.S. announced plans to replenish its strategic petroleum reserves.<\/p>\n
Asian markets<\/span> were deep in the red while gold hurtled toward the $2,000-an-ounce level on safe-haven buying. <\/p>\n Chicago Fed President Austan Goolsbee said he’s hopeful the U.S. can avoid a recession despite rapid and steep interest-rate hikes over the past 18 months. <\/p>\n U.S. stocks fluctuated before closing firmly in the red overnight and Treasury yields hit 16-year highs after Fed Chair Jerome Powell warned that inflation is “still too high” and additional monetary policy tightening may be needed.<\/p>\n Economic reports painted a mixed picture, with jobless claims falling to a nine-month low last week while a measure of existing home sales dropped to a 13-year low in September.<\/p>\n The Dow gave up 0.8 percent, the S&P 500 shed 0.9 percent and the tech-heavy Nasdaq Composite lost 1 percent. <\/p>\n European stocks hit a seven-month low on Thursday as a string of disappointing earnings updates added to worries over rising bond yields and the escalating Israel-Hamas war. <\/p>\n The pan European STOXX 600 fell 1.2 percent. The German DAX eased 0.3 percent, France’s CAC 40 slipped 0.6 percent and the U.K.’s FTSE 100 declined 1.2 percent. <\/p>\n